Former Chairman of Morgan Stanley in Asia, Stephen Roach, called QE3 "crack" and said "it's not going to work." His comments came during an interview this morning on Bloomberg TV.

During the interview, Roach joked that WSJ reporter, Jon Hilzenrath, is actually the chairman of the Fed. "Bernanke has no choice but to deliver on what he wrote."

Roach was referring to Hilzenrath's report yesterday, which investors view as highly suggestive of a near term move by the Fed, although it doesn't say it outright. The source for the report is allegedly within the Fed.

"The Fed is flailing and has been flailing for the better part of the last three years. We had QE1, which worked, and that’s it," said Roach. "QE2, Twist 1, Twist 2 and now maybe QE3 . . .but they are dangling this raw meat in front of the markets and the markets are salivating as they always do in that frenetic way that they try to believe in the Fed. But it has not worked and it will not work."